Origin Energy Limited and the Australian state of New South Wales have agreed to extend operations of the 2,880MW Eraring Power Station by two years. Located near the city of Newcastle (NSW, Australia), the Eraring coal-fired power plant was due to close in 2025 and is now expected to operate until 19 August 2027 to support security of the state’s electricity supply through the energy transition. Under the Generator Engagement Project Agreement (GEPA), Origin will receive compensation covering the cost of running the 40-year-old plant, while aiming for the plant to generate at least 6TWh for the two additional fiscal years it will run. However, to be eligible to receive compensation, Origin must advise the State by March whether it will trigger the GEPA for the coming financial year. While the company retains the right to determine the final timeline for retirement of all four units of Eraring Power Station, no State compensation will be payable after 2027, and the plant must retire in full no later than April 2029.
Eraring Power Station is a 2880 MW black coal plant on the shores of Lake Macquarie that has been operating since 1984. Origin has committed to the construction of a large-scale battery at Eraring. The first phase of the project consists of a 460 MW two-hour battery located adjacent to the power station, scheduled to become operational by late 2025.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.